Verizon Expands FTTP Plan
The RBOC had previously announced plans to lay fiber connections to 1 million homes and businesses in California, Florida, and Texas. Now it is planning to hook up an additional 2 million customers during 2005 in Delaware, Maryland, Massachusetts, New York, Pennsylvania, and Virginia, and work is already underway in those new states.
The carrier says it is spending $800 million on its fiber rollout this year alone.
Verizon's news follows on the heels of the Federal Communications Commission (FCC)'s "deep fiber" ruling and SBC Communications Inc.'s (NYSE: SBC) fiber expansion plans. (See Critical Telecom Cheers FCC Ruling, SBC Speeds Up FTTH Plan, and Mais Alors! Alcatel Bags $1.7B SBC Deal .)
Verizon hasn't specified which vendors will benefit from this expansion, but current suppliers ADC Telecommunications Inc. (Nasdaq: ADCT), Advanced Fibre Communications Inc. (AFC) (Nasdaq: AFCI), and Corning Inc. (NYSE: GLW) look well placed.
ADC's share price jumped 7 percent yesterday to $2.23, while Corning rose 3 percent to $10.73.
AFC's stock, however, dipped slightly, by 7 cents to $15.59, perhaps reflecting Verizon's confirmation that it will bring in a second source for its FTTP networking equipment, and the uncertainty surrounding AFC's proposed acquisition by Tellabs Inc. (Nasdaq: TLAB; Frankfurt: BTLA). (See Rough Week for AFC.)
— Ray Le Maistre, International News Editor, Light Reading